In light of the recent economic downturn, many businesses are weighing the need for risk management with the desire to cut costs and increase revenue. Due to tighter budgets, business priorities have shifted. Three-quarters of chief risk officers (CROs) surveyed by PwC said they couldn’t keep up with the pace of change in the regulatory environment despite investment in their risk management program. In the next 12 months, 65% of CROs plan to invest more in data analytics, and 57% intend to automate their processes to monitor risk better.
In addition, nearly half of those surveyed are apprehensive about a more active regulatory and legislative environment, and 39% are very concerned about their company’s ability to mitigate compliance and regulatory risk. Combined with evolving cyber threats, these uncertainties test risk executives’ preparation for 2023.
10 Best Practices for Compliance and Risk Management
An effective compliance and risk management program plays a central role in increasing customer trust. Below are ten key compliance and risk management practices to help you navigate the new year’s uncertain economic and security environment.
1) Ensure your compliance program is tech-enabled and scalable so that you can prioritize repetitive high-volume tasks.
2) Automate and use data analytics to improve monitoring and risk management while streamlining compliance activities so staff can concentrate on emerging threats.
3) Prepare a cybersecurity playbook and assess cybersecurity risks related to key strategic initiatives and significant transformations.
4) Improve fraud risk management capabilities through risk-based modeling and other advanced tools.
5) Gain visibility into your supply chain with tools that capture and process real-time data flows, visualize trends, and investigate signals.
6) Put your workforce in a position to stop threats by providing them with the best tools and training. Remember, people are your first line of defense.
7) Partner with your CIO to shape your cybersecurity and privacy strategy as conditions and risks change.
8) Provide regulators with the required data, including metrics, scope and boundaries.
9) Leverage artificial intelligence (AI) to run risk assessments and generate recommendations across risk and compliance programs.
10) Digitize workflows to increase efficiency, reduce manual errors, and enable data standardization to improve reliability, integrity, and auditability.
Instnt Access™ Can Help You Implement Best Practices
With Instnt Access™, you can implement these best practices by combining robust compliance and risk management with frictionless customer experiences.
Instnt takes care of the heavy lifting when it comes to safeguarding your business from fraud. With our AI, you can specify which fraud risk and compliance checks you want to run on your customers. Instnt Access™ provides the following capabilities:
- One-click frictionless customer onboarding
- Single sign-up for open banking cross-product access
- Risk and security level of assurance-based assertion
- Managed Hyperledger blockchain for non-repudiation
- Embedded OEM verifiable credential identity wallet
- Managed credential issuer and verifier as well as revocation for lost devices
- World Wide Web Consortium (W3C) decentralized identity support
- Up to $100 million in fraud loss protection
Instnt Access™ employs blockchain technologies developed by the Hyperledger Foundation. We strive to advance the technology and contribute to the Hyperledger ecosystem. With Instnt Access™, you can manage and verify digital information more efficiently and safely. Credentials created using digital identities are secure and accessible, and they preserve customer privacy.
Hyperledger technology also allows individuals to manage their own identities. Organizations can create a digital certificate of a person’s status without exposing personal information. Blockchains can then be used to verify credentials’ authenticity.
Instnt Access™ empowers institutions to provide customers with access to products and services in just one click. Now, you no longer need to trade off customer experience with your security, risk, and compliance requirements.
Want to find out more about how Instnt can aid your compliance and risk management? Request a demo today.
Sources
PwC website - CRO and risk management leaders: Latest findings from PwC’s Pulse Survey
KPMG Advisory website - Ten Key Regulatory Challenges of 2023
Tech Target - 12 top enterprise risk management trends in 2023